Glocal Marketing, the importance of feeling at home.

Mass marketing, which focuses on volume and standardization of the strategy, is replaced by Glocal Marketing, whose objective is the personalization, not only of the products, but above all of the ways of entering local markets, based on the culture and uses of the specific country. What impact does culture have on the marketing strategies of global brands? How is it possible to develop a truly successful Glocal Marketing strategy? Let's find out together!

What is Glocal Marketing?

The term glocalization is obtained from the union of two words: globalization and localization, two terms however having profoundly different meanings.

The first is the phenomenon of global market unification which, in the decades between the 20th and 21st centuries, led to the creation of cultural, technological and social interdependencies. The second, however, intends to emphasize the importance of the local context and its greater autonomy and individuality.

When we talk about glocalization we are referring to a process that companies started decades ago. Entering new markets, in fact, they realized the importance of adapting their offer to the reference context , taking into account culture, traditions, religion and political aspects.

The concept underlying the term glocalization has Japanese origins and recalls the word dochakuka which means global localization. The term then, in the 80s, was used by the sociologist Roland Robertson who defined it as: “the simultaneity—the co-presence—of both universalizing and particularizing tendencies.” (the simultaneity - the co-presence - of both universalizing and particularizing tendencies)

The term became common among sociologists and social scientists who used it not only for marketing and business but also in the entertainment and technology industries.

But what is the real effect of a Glocal Marketing strategy?

The company enters a new market and must adapt its offer to the needs and culture of local consumers, conforming to the context in which it decides to operate. Its products/services are thus “ glocalised ”. Thanks to a glocal marketing strategy, a product manages to be universal, global and local at the same time, that is customized on the basis of the needs of different individuals.

But be careful, because it is not as simple as it seems…

Here is an example: it was the year 2012, when the Swedish giant IKEA decided to enter Saudi Arabia with a strategy that caused quite a few criticisms. All female figures were eliminated from the catalogues. A choice dictated by Middle Eastern culture, in which women are never bare-skinned. The news was given by a Swedish newspaper, the Metro which, in a provocative way, showed the difference between the western catalog and the Saudi one.

Ikea, in an attempt to implement a glocalization strategy, has managed to spark off a fierce debate that has questioned its ethical values and its credibility on a global level.

This makes us understand that a glocalization strategy requires a precise study of the market in which it is decided to implement it and does not always bring benefits.

Advantages of a Glocal Marketing strategy

A Glocal Marketing strategy becomes a powerful tool capable of guaranteeing a series of competitive advantages for brands that are able to exploit it:

• Dissemination in foreign markets : the adoption of a Glocal Marketing strategy allows the diffusion of the product/service in foreign markets;
• Brand recognition : entering new markets with a successful glocal strategy also means making your brand recognizable;
• Create Jobs : The brand to sell and run the local business will hire local people, creating job opportunities;
• Innovation, diversity and development : a Glocal Marketing strategy opens new horizons to companies that choose to grow and develop not only in terms of size, but also in terms of innovation;
• Standardization – personalization : the binomial probably represents the most important advantage of a glocal marketing strategy. That is, the possibility of standardizing some core elements and customizing others. This mechanism allows you to reduce costs, but at the same time to customize and make the product unique.

Disadvantages of a Glocal Marketing strategy

But what happens when the glocal strategy doesn't work? What happens if, in an attempt to localize, as in the case of IKEA, the brand forgets its own values?

In these cases, the benefits are replaced by the damages of an unsuitable strategy:

• Local culture is the way : when deciding to adopt a Glocal Marketing strategy it is essential to know the traditions, culture and habits of the consumers of that geographical area. Often people make the mistake of thinking that a product or service can be personalized in a more or less identical way in two different countries, but that's not the case.
• Remember where you come from : it is true, attention to local culture is essential, but we must never forget the values of the brand, its mission and its ideas. The risk may be that of moving away completely from what one is, as happened to IKEA.

Create a Glocal Marketing strategy

The digital age has been of great help to businesses, as it has also allowed the small local entrepreneur to make his product/service global. Thanks to the birth and development of the network, it is possible to connect with the world, looking for new customers to satisfy.

But what is the difficulty in this case? Definitely diversity.

Each of us has different needs, wants and desires, even more if we consider different geographical areas. This happens because everyone has their own history, culture and traditions that those who choose to market a product/service must know and respect.

This is why, for a successful Glocal Marketing strategy, it is not enough to rely only on digital channels, but there is a need to create a strategy that takes advantage of online and offline channels.

Social media is a great tool. In fact, thanks to Facebook Ads or Instagram Advertising, it is possible to formulate personalized ads for a specific target, monitoring performance and results through Insights. Even local events can be an excellent tool for attracting new customers and making the brand known, if accompanied by coherent and targeted communication.

The choice of channels is certainly subordinated to the reality in which one fits in : in China, for example, sites like Facebook, Youtube and Google are blocked. Furthermore, since October 2021, LinkedIn, the most famous social network for the development of professional contacts, has also ceased to be active. Imagine, therefore, how difficult it is to even think of being able to rely exclusively on an online strategy in markets such as the Chinese one.

To choose the right channel, it also becomes essential to consider the size of the business and the brand : how many points of sale there are, where they are located, what target customers they have. On the basis of this information, it will then be necessary to design a glocal marketing strategy that is customized for that place.

Examples of Glocal Marketing strategies

There are many brands that adopt the motto " think global, act local " that accompanies the concept of glocalization. The underlying idea is the development of a glocal strategy through the use of global experience and the customization of products/services based on the local market.

McDonalds

It is one of the classic examples of a global company adopting a glocal strategy. In fact, it has created an ad hoc strategy for each market it has entered, adapting not only the communication, but also the range of products. For example, in the German menu we find beer, in the French one wine.

In India, the McCurry Pan was introduced, a sort of box made of crusty bread, filled with a creamy sauce with mushrooms, broccoli and peppers (there is also a variant with chicken).

In Costa Rica on the menu we find, instead, the Mcpinto Deluxe. In fact, Gallo Pinto is a typical dish of Costa Rica and Nicaragua. It is made with fried rice and beans and is mostly eaten for breakfast. The McDonald's version adds scrambled eggs and sour cream.

Fiat

For the launch of the Fiat 500, the company decided to create different commercials based on the target and the geographical area of reference. This allowed her to optimize the result and the reception of the message by adapting the form of communication to the different markets.

For example, in Italy the spot plays on nostalgia, emotions and Italian pride, taking up a scene from Ennio Morricone's “ Nuovo cinema paradiso ”. In the commercial, images that relate to Italian history follow one another.

In the USA the nostalgia element and the tradition factor do not have the same effect, therefore Fiat has decided to focus on a different communication strategy. The idea was to emphasize some clichés about Italians by creating ironic and amusing commercials.

Coca Cola

The recipe still remains a secret, but one thing is certain: Coca-Cola manages to be everywhere.

In Japan , for example, there has been green tea coca-cola since 2009, without calories. Green tea is, in fact, a fundamental drink in the life of all Asians.

In Paraguay, on the other hand, we have Coca Cola Life , sweetened with Stevia, a typical plant of the country whose dried leaves are used as a natural sweetener.

Starbucks

A successful Glocal Marketing strategy, however, does not focus only on the personalization of the product-service, but also of the stores.

In 2018, Starbucks entered Italy with " Researve Roastery ", a store opened in the heart of Milan, which features a luxury design and takes up the strong attention of Italians for fashion. The products are typically Italian, thanks to the partnership with the Princi brand, a well-known Milanese baker. Inside, the customer has a real sensory experience: he breathes in the scent of the coffee, admires the roasting process and forgets the real reason he came in, that is to drink a cup of coffee.

The strategy of dialects in glocal marketing?

In Italy there is a characteristic that distinguishes us from region to region: the dialects. The dialect is a distinctive trait for every Italian, which links him to his roots. And then there is no better diversifying element for effective local communication .

The use of dialects in advertising has always existed, but it has a different function depending on the brand:

• if it is an Italian brand, the goal is to communicate the quality of the product throughout the country and link it to the land of origin;
• if it is an international brand, the goal is to get closer to the territory, establish a bond with consumers and be welcomed in the best possible way.

Mars, to consolidate its relationship with local customers, has created an advertising campaign in which, through phrases in Neapolitan dialect, it praises the product.

Diesel, an Italian brand, with the Be Stupid campaign, has created a link with the whole national territory, differentiating the text according to the dialect of use in each region. Here are some of the posters, respectively in Bergamo, Neapolitan and Turin dialects:

In 2015 Ferrero created an advertising campaign for one of its most famous products: Nutella. The campaign is called " Nutella speaks like you ", in fact thousands of jars were put up for sale bearing typical expressions of the local dialect.

Consumers are interested in brands that are global. They want to feel part of an international community but are also interested in brands that manage to be local. Brands that respect their culture and traditions. Therefore, a glocal marketing strategy, correctly implemented, seems to be the way to guaranteed success!